Regulatory hurdles, subsea cable blueprint must be ironed out for ASEAN Power Grid: Jeffrey Siow

To push for clean electricity trading within ASEAN, it is necessary in the next two years to address regulatory hurdles and finalise a regional blueprint to build subsea cables that will be the lifelines for electricity flows, said Second Minister for Finance Jeffrey Siow.

These will be the priorities for Singapore and Thailand, which will take on the ASEAN chairmanship in 2027 and 2028, respectively, Siow said at the Unlocking Capital for Sustainability summit on Sept 10.

The ASEAN Power Grid, which is aimed to be realised by 2045, will allow member states to trade surplus electricity. Importing clean electricity is a key strategy for Singapore’s net-zero goal.

“The reality is that cross-border projects are always hard, and the real challenge is in regulations. ASEAN doesn’t have a unified legal framework for cross-border electricity trade as at now. Domestic regulations differ in every country. We have to put together the regulations, and it’s a patchwork at the moment,” noted Siow, who is also Transport Minister.

Other constraints and regulatory hurdles that need to be ironed out include the duration of export licences and the lack of clear norms to inspect, maintain and repair submarine cables, he told Eco-Business chief executive Jessica Cheam during the dialogue.

“It is not just a matter of literally flicking the switch. We have to address every one of these issues for electrons to flow,” he said.

He was responding to Cheam, who asked for updates on the ASEAN Power Grid and the region’s transition towards cleaner energy. The summit is part of the At One Impact Week 2026 forum at Suntec Singapore Convention and Exhibition Centre.

Regulatory hurdles can affect the bankability of energy trading projects. Other factors include settling the fees paid to transit countries, which will transmit electricity through their national grids to buying countries like Singapore.

These hurdles have gradually come to light through reported obstacles facing Batam’s export of solar energy to Singapore and the export of hydropower from Laos to Singapore.

ST reported in March that the planned export of solar energy from Indonesia’s Batam to Singapore appears to have hit a snag as Indonesia requires energy exporters to renew their permits every five years. This creates uncertainty since the government can revoke a licence.

Moreover, for major infrastructure projects such as solar farms to secure financing, they typically have to be considered “bankable” for about 20 to 25 years.

The Laos-Thailand-Malaysia-Singapore electricity import deal, which was launched in 2022 and has served as a pilot initiative for the regional grid, had encountered obstacles.

In mid-2024, Reuters reported that an extension of the deal was fraught with disagreements over how the energy would be transmitted through Thailand and Malaysia, as well as the amount of power to be purchased.

In late 2025, ASEAN energy ministers endorsed the grouping’s submarine power cable development framework to build submarine cables across the region.

The framework will facilitate subsea surveys and the laying, maintenance and protection of subsea power cables in the region.

Siow said: “The progress depends ultimately on the sustained willingness of all 11 governments... We have to keep pushing as hard as we can. We may not be able to get all the way to where we want, but we’ll try our best to achieve all this.”

He also reiterated Singapore’s commitment to reaching net-zero emissions by 2050 – despite weakening global momentum – and to decarbonise the shipping sector.

“We will pace our strategies as we go, including decarbonisation strategies. We will scale what is viable, and finally we will capture green growth opportunities where they arise and are suited for our economy,” he said.

He also noted that amid geopolitics and potentially weakening commitments by other countries, global greenhouse gas emissions are showing signs of flattening.

On decarbonising the shipping sector, Siow said it was disappointing that the International Maritime Organization’s net-zero framework was delayed in 2025. The framework involves putting a price, or carbon tax, on shipping emissions and setting a fuel standard.

In October 2025, the US and other oil-exporting countries opposed the framework, resulting in a one-year delay.

“This October is when we have to make another decision on what to do next... Informally, it looks optimistic. There are things that are happening. The conversations are constructive, and we hope that we can support that,” said Siow.

“Some of the countries that are very integral to the (IMO) agreement will not be able to come to terms. And so the solution is not to scupper everything... There are things that move faster. There are things that move slower. We just have to accept that and try to do our best,” he said.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

CEO fails in bid to recover $468,000 spent on ex-girlfriend during their relationship Jail or reformative training not default sentence for young money mules: High Court